RELATED AND UNRELATED DIVERSIFICATION AND THEIR EFFECT ON HUMAN-RESOURCE MANAGEMENT CONTROLS

This paper examines the link between related and unrelated diversifica tion and human resource management (HRM) controls. The paper presents a model proposing that the type of corporate (macro) controls used by related or unrelated firms implies a relative emphasis on either flexi bility or fit among HRM practices in that related firms emphasize flex ibility and unrelated firms emphasize fit. This emphasis on flexibilit y or fit in turn, has implications for the use of HRM (micro) controls such as dan, behavior, and outcome controls such that related firms e xhibit the use of all three types of HRM controls, while unrelated fir ms exhibit a relative emphasis on the use of outcome controls. (C) 199 7 by John Wiley & Sons, Ltd.